Lending for Growth? An Analysis of State-Owned Banks in China

Arbeitspapier

This paper provides the first comparative analysis of different types of publicly owned banks operating in China between 1997 and 2008. Using principal component analysis and Granger-causality tests, this study shows that China's state-owned commercial banks and rural credit cooperatives did not promote GDP growth during the observation period. State-owned commercial banks even had a negative effect on growth in the manufacturing sector. By contrast, state policy banks and joint stock commercial banks did promote domestic growth. China's experience presents a more nuanced picture of state banking that goes beyond the role of ownership to consider functional and institutional differences.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 2013:19

Classification and Topics

• Classification: Wirtschaft ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages ; Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance ; Socialist Institutions and Their Transitions: General
• Subject: China ; Banking sector ; Economic growth

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Andersson, Fredrik N. G. ; Burzynska, Katarzyna ; Opper, Sonja
• Event: Veröffentlichung
• (who): Lund University, School of Economics and Management, Department of Economics
• (where): Lund
• (when): 2013

Further information

• Handle: http://hdl.handle.net/10419/260077
• Last update: 10.03.2025, 11:44 AM CET